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SDK to Change Production Setup of Aluminum Extrusions

March 15, 2004

Showa Denko K.K. (SDK) has decided to sell its idle extruder at Sakai Plant to Yasuda Kinzoku Kogyo Co., Ltd. (Yasuda) and entrust Yasuda with production of 200 tons a month of large-sized aluminum extrusions as from May. The extruder, which has been suspended since March 2003, will be operated at its original location through the lease of relevant land and building.

The market for large-sized aluminum extrusions has been growing rapidly since the autumn of last year for such applications as semiconductor manufacturing equipment, various industrial machinery and plasma display panels. SDK currently has a backlog of orders equivalent to three months’ production with delivery period of approximately two months, which is double the normal period.

SDK will focus on the production of extremely large-sized extrusions based on 15-inch diameter billets, using a 3,900-ton extruder at the Oyama Plant. SDK will also focus on precision extrusions that require sophisticated skills. For general large-sized extrusions based on 12-inch billets, SDK will hereafter entrust their production to Yasuda. Through these measures, SDK will increase its supply capacity by approximately 20% and meet growing customer demands for large-sized extrusions.

As for products outside the scope of the tolling arrangement, Yasuda will sell them through Showa Denko Aluminum Trading K.K. All aluminum billets for the production will be supplied by SDK.

[Profile of Yasuda Kinzoku Kogyo Co., Ltd.]

Head office 11-9, Minami Semba 1-chome, Chuo-ku, Osaka
President Kou Yasuda
Established September 1939
Capital ¥76.8 million
Scope of business Manufacture of aluminum shapes for use as construction materials; anodization of aluminum
Employees 75
Plants Gifu Prefecture; Saitama Prefecture
Sales office Chiyoda-ku, Tokyo
Annual sales ¥5,432 million (for fiscal year ended in October 2003)

[SDK’s aluminum extrusion business]

Oyama Plant (Tochigi Prefecture) Producing large-sized extrusions and pipes/bars that require different types of alloy compositions. Monthly output is around 3,000 tons, using 11 extruders.
Hikone Plant (Shiga Prefecture) Producing mainly small-sized extrusions for use as construction materials. Monthly output is around 2,000 tons, using five extruders.